Historically, the final quarter has been Bitcoin's best period of the year. The $1.2 trillion cryptocurrency has rallied about 90% during this period over the past decade, according to CoinMarketCap analysts. This year initially seemed to follow the same trend.

Bitcoin was expected to rally this week, supported by several favorable conditions. The Federal Reserve had cut interest rates, with more cuts anticipated—CME Group's FedWatch tool indicated a 30% chance of a 0.5% rate cut in November and a 70% chance of a 0.25% cut. Additionally, spot Bitcoin exchange-traded funds saw renewed inflows, and Beijing's measures to boost the Chinese economy had injected significant liquidity into the market. Even Vice President Kamala Harris showed tentative support for digital assets, signaling a warmer stance from Capitol Hill.

However, rising tensions in the Middle East disrupted the anticipated rally. Iran's missile attacks on Israel led to concerns about broader conflict, impacting investor sentiment. Currently, Bitcoin trades at just over $61,000, down nearly 7% from a week ago.

So, when can we expect Bitcoin to rebound? BlackRock suggests a recovery before the end of the year. According to their analysis, Bitcoin has historically seen double-digit gains within 60 days following major geopolitical events.

The favorable factors that should have driven Bitcoin to new heights remain in place, and the recent dip presents an opportunity for investors. Quinn Thompson, founder of hedge fund Lekker Capital, called buying Bitcoin at this point "a no-brainer."